www.gst.gov.in: All about the GST Portal

GST Portal i.e. www.gst.gov.in is the GST website of the government of India. On the GST Portal you can register for GST, file GST Returns, view input tax credit, apply for refunds, apply for cancellation, search GSTIN etc.

GST Application Status: Track GST Number Status using ARN
GST Application Reference Number or ARN is generated after GST Registration Application. Track GST Application Status for GST Number or GSTIN using ARN.
Explore
GST Application Status: Track GST Number Status using ARN
GST Application Reference Number or ARN is generated after GST Registration Application. Track GST Application Status for GST Number or GSTIN using ARN.
Explore

Using GST Portal before logging into an account

Home Page

GST Number Search: Verify GST Number or GSTIN online
Enter GST number or GSTIN (GST Identification Number) and verify GST details online. GST Number or GSTIN is a unqiue 15 digit number allotted after GST Registration.
Explore
GST Number Search: Verify GST Number or GSTIN online
Enter GST number or GSTIN (GST Identification Number) and verify GST details online. GST Number or GSTIN is a unqiue 15 digit number allotted after GST Registration.
Explore

Services

GST Law

Here you can access the Act, Rule, Amendment, Notifications etc relating to GST Law issued by Central and/or State Government from the websites of Centre and State respectively through the links provided

Downloads

  • Offline Tools – Download the offline tools to file GST Return
  • Proposed Return Documents – Return formats of new GST Return

Search Taxpayer

  • Search by GSTIN/UIN – option to search a taxpayer using GSTIN or UIN
  • Search by PAN – option to search a taxpayer using PAN
  • Search Composition Taxpayer – option to search a taxpayer who has opted in or opted out of composition scheme. It can be searched using GSTIN/UIN or State

Help

  • System Requirements – for using GST Portal, for using DSC, for installing web socket installer
  • User Manuals, Videos and FAQs – content in form of training kits, quick videos, user manuals and FAQs to explain the GST Law and GST Compliances
  • GST Media – connects to the Youtube channel of GSTN i.e. Goods and Services Tax Network
  • Site Map – site map of the entire GST Portal
  • Grievance Redressal Portal – taxpayer can raise a complaint regarding problems faced by them while working on the GST Portal

E-Way Bill System

Information page regarding the e-way bill system under GST. Use of e-way bill, modes of generating e-way bill, contents of e-way bill, validity of e-way bill. It also provides links to visit the E-Way Bill Portal and related content.

New Return Trial

  • New Return Prototype – prototype of offline tool to file new GST Returns to allow taxpayers to learn about the new return and get feedback on it
  • Offline Tools for New Return – link to download the offline utility to file New GST Returns and instructions to use the same
  • Top Suggestions and Feedback – displays a list of top contributors who have given good suggestions and feedback

FAQs

What services are provided on GST portal?

Once the user is logged into www.gst.gov.in following are the services available to the user:

1. Application for Registration for Normal Taxpayer, ISD, Casual Dealer
2. Application for GST Practitioner
3. Opting for Composition Scheme (GST CMP-02)
4. Stock intimation for Composition Dealers (GST CMP-03)
5. Opting out of Composition Scheme (GST CMP-04)
6. Filing GST Returns
7. Payment of GST
8. Filing Table 6A of GSTR-1 (Export Refund)
9. Claim Refund of excess GST paid (RFD-01)
10. Transition Forms (TRAN-1, TRAN-2, TRAN-3)
11. Viewing E-Ledgers
12. Furnish Letter of Undertaking(LUT) (RFD-11)

Apart from the above-mentioned services, browsing notices received, filing ITC forms, and engage/disengage GST practitioner are some of the other services provided by the GST Portal/GSTN.

What are the system requirements to install the emSigner application?

A user needs the emSigner software to sign online documents on the GST Portal.
The pre-requisites for installing the emSigner are provided as below:
1. Windows 32 / 64 bit OS
2. Java 1.6 JRE 1.6.0_38+, Java 1.7, Java 1.8
3. Windows: Admin access to install the emSigner component
4. Any one of the following ports should be free- 1585, 2095, 2568, 2868, 4587

How can I recover my GST ID and password without email?

Follow these steps to recover GST ID:
1. Login to GST Portal and log in
2. Click on Forgot Username at the bottom of the page
3. Submit your GST Registration Number (GSTIN) or any Provisional ID or UIN. Click on Generate OTP
4. Enter the OTP received
5. You shall receive your User ID in your e-mail

How do I find the GST number of a company by its name?

It’s not possible to find GSTIN using the name of the taxpayer/business. It can be mainly done by either searching through GSTIN or UIN of the business or by entering the PAN of the taxpayer/business.

GST Portal : Withdraw from Composition Scheme

In order to opt-out of the Composition Scheme, the taxpayer has to file an intimation. File the intimation to withdraw from the composition scheme in the Form GST CMP-04 on GST Portal. The Taxpayer will also have to provide details of the stock of inputs, inputs contained in semi-finished and finished goods in form GST ITC-01. Further, submit details within a period of 30 days from the date of filing an intimation.

Effect on Input-Tax Credit (ITC) – withdraw from Composition Scheme

Once the taxpayer opts out of the Composition Scheme, they enter the regular scheme of taxation under GST. Furthermore, taxpayers are eligible to claim Input Tax Credit (ITC) on their purchases after opting-out. ITC is available subject to the following conditions:

  1. The ITC claimed on purchasable goods are for producing taxable supplies.
  2. The ITC claimed on the basis of the invoices/documents should be available.
  3. The date of the invoice should be within 12 months from the appointed date.
  4. Reduce the credit on capital goods by such percentage points as may be prescribed.

GST Portal – Steps to withdraw from Composition Scheme

  1. Login to GST Portal

    Login to your account on GST Portal using valid username and password

  2. Navigate to Application for Withdrawal from Composition Scheme

    Go to Services > Registration > Application for Withdrawal from Composition Scheme

  3. Application Page

    We move to the Intimation/Application for Withdrawal from Composition Levy page.
    * Date – Select appropriate date from calendar. The date for withdrawal from Composition Levy cannot be before the date on which Composition Levy was opted.
    * Reason – Select the reason for withdrawal from the drop-down list.

  4. Verification

    Click on the verification check-box. Select Name of the Authorized Signatory, enter Place and click on Save.

  5. Submit Application

    You can submit the application either using EVC option or using DSC. DSC requires the emSigner software for the GST Portal.

Submit using DSC

  • Click on “Submit with DSC” option. A Warning message will appear on the screen. Click on “Proceed” to move forward
  • The emSigner window appears on the screen. Select the desired signature required for the application and click on Sign

Sign using EVC

  • Click on the option Submit with EVC
  • The system sends an e-mail and SMS to the registered e-mail address and mobile number with an OTP
  • Enter the OTP
  • Once the authentication is complete, you will receive a success message. The system will generate an ARN and send it to the registered e-mail and SMS in next 15 minutes

Check Updated Status in Profile

Taxpayer can confirm the change by visiting profile on GST Portal. Go to the section ‘Taxpayer Type’. The status changes from ‘Composition’ to ‘Regular’. The taxpayer will now have access to all returns applicable to regular taxpayers.

FAQs

Is a Composition Dealers allowed to avail Input Tax Credit?

No, the Composition dealer is not allowed to avail Input Tax Credit. A taxpayer who opts to pay tax under the composition scheme cannot take credit on his input supplies.

How is availed input tax credit (ITC) treated when one switch on to Composition Scheme from the normal scheme?

In such a case when a person switches on to the composition scheme from the normal scheme, he/ she becomes accountable to pay an amount equal to the credit of input tax in terms of inputs present in stock on the day instantly after the date of the switchover. The remaining balance of input tax credit in the credit ledger after payment of such amount will be treated inconsiderable.

Can I choose for Composition Scheme in one year and change it in the later year?

Yes, You are allowed to switch between the Composition Scheme and the normal scheme on the basis of your turnover. The same switchover can be declared on the GST Portal. However, this flip flop comes along with alterations in the way you issue invoices and file your returns

GSTR 2A : Meaning, Input Tax Credit, Return Filing

What is GSTR 2A?

GSTR-2A is an auto-populated return that contains details of the input tax credit on purchases, TDS credits, and TCS credits of a buyer. It is auto-populated based on the invoices uploaded by the seller on filing his GST Return. The GST Return data will be auto-populated from data uploaded in the following returns:

GST Return Nature of Seller
GSTR-1 Regular Dealer
GSTR-5 NRTP i.e. Non-Resident Tax Payer
GSTR-6 ISD i.e. Input Service Distributor
GSTR-7 TDS Deductor
GSTR-8 TCS Collector i.e. E-Commerce Operator

How are invoices auto-populated in GSTR-2A?

  • Seller uploads data and files GST Return on the GST Portal
  • GSTR-2A in the buyer’s account gets auto-populated
  • Buyer views or downloads the GST Return
  • Buyer reconciles input tax credit in GSTR-2A with the input tax credit in GSTR-3B
  • The buyer takes action for mismatch in reconciliation by communicating with the seller

What information is displayed in GSTR-2A?

Part A

  • B2B Invoices – details of invoices uploaded by the seller on filing GSTR-1 or GSTR-5. Click on the GSTIN hyperlink to view the uploaded invoices. Click on the Invoice hyperlink to view the invoice details.
  • Amendment to B2B Invoices – details of invoices amended by the seller on filing GSTR-1 or GSTR-5. Click on the GSTIN hyperlink to view the uploaded invoices
  • Credit / Debit Notes – details of credit note or debit note uploaded by the seller on filing GSTR-1 or GSTR-5
  • Amendment to Credit / Debit Notes – details of a credit note or debit note amended by the seller on filing GSTR-1 or GSTR-5

Part B

  • ISD Credits – details of invoices uploaded by ISD on filing GSTR-6
  • Amendments to ISD Credits – details of invoices amended by ISD on filing GSTR-6

Part C

  • TDS Credits – details of amount paid and TDS deducted on it by TDS Deductor on filing GSTR-7
  • Amendments to TDS Credits – details of amendments in the amount paid and TDS deducted on it by TDS Deductor on filing GSTR-7
  • TCS Credits – details of amount received and TCS collected on it by TCS Collector on filing GSTR-8

FAQs

How is GSTR 2A different from GSTR-2?

GSTR-2 is the return for reporting of purchases that needs to be filed by a regular dealer. However, the GST department later discontinued this return due to increased complexity and portal issues.
GSTR-2A is an auto-populated return in the buyer’s login on GST Portal which is automatically generated once the seller files his GST Return (GSTR-1, GSTR-5, GSTR-6, GSTR-7, GSTR-8)

How can I correct my seller’s mistakes in GSTR-2A?

If there is any mismatch in the actual input tax credit against the input tax credit in GSTR-2A, the buyer should intimate the seller. However, he cannot correct the seller’s mistake since it is an auto-populated return and cannot be edited.

How to view or download Electronic Cash Ledger on GST Portal?

Electronic Cash Ledger is the statement that reflects amounts deposited by the taxpayer for payment of tax, interest, fee or penalty. Taxpayer can make the payment via NEFT, RTGS, credit card, debit card or net banking. Taxpayer can download Electronic Cash Ledger from the GST Portal.

Steps to view or download Electronic Cash Ledger on GST Portal?

  1. Login to GST Portal

    Log in to your account on the GST Portal with valid username and password

  2. Navigate to Electronic Cash Ledger

    Go to Services > Ledgers > Electronic Cash Ledger

  3. Balance on Current Date

    The screen displays balance of Electronic Cash Ledger as on the current date.

  4. Select Period

    Click on Electronic Cash Ledger and enter the period for which you want to view the ledger.
    Note: You can view the E-Cash Ledger for a maximum period of 6 months only.

  5. View Electronic Cash Ledger

    The Electronic Cash Ledger will appear on screen. The taxpayer can download it in pdf or excel format.

  6. View Tax Amount

    The aggregate amount of tax under each head is shown. To view the breakdown, click on the amount and a popup with amount details will appear

FAQs

Can anybody else view my Electronic Cash Ledger?

Following persons can view the Electronic Cash Ledger:
1. Taxpayer
2. Authorized Signatory of taxpayer
3. GST Practitioner of taxpayer
4. Jurisdictional Officer of taxpayer

How can a taxpayer view details of transactions in the Electronic Cash Ledger for a specific period?

To view details of transactions, the taxpayer can view the Electronic Cash Ledger for a specified period. The option is available on the landing page of the Electronic Cash Ledger. Taxpayer can view transactions for a maximum period of 6 months at a time.

Can the amount available in cash ledger be deemed as payment for any liability?

No, the taxpayer cannot assign the balance in electronic cash ledger to a specific liability unless he/she makes a debit entry from cash ledger. Taxpayer can use the balance by logging into the account on GST Portal.

What is an Electronic Credit Ledger under GST?

An E-Credit Ledger or Electronic Credit Ledger under GST is the ledger where a taxpayer can view the input tax credit of GST claimed in GSTR-3B (on account of purchases and expenses). It is maintained on the GST Portal. Moreover, the balance in this ledger can be utilized for paying tax only and not for paying interest, late fee, penalty etc.

Electronic Credit Ledger under GST reflects:

  • Input Tax Credit of GST accumulated from purchases and expenses
  • Input Tax Credit of GST utilized for payment of output tax liability
  • Balance Input Tax Credit that can be utilized in future

The credit of Input GST from purchases and expenses can be used for paying Output GST on Sales.

  • If Input GST > Output GST, excess balance is reflected in E-Credit Ledger
  • If Input GST < Output GST, the difference amount is to be deducted from the E-Credit ledger else difference amount is to be paid by depositing cash in the E-Cash Ledger

While filing the monthly GSTR-3B, in Table 6.1 Payment of Tax, the credit balance and cash balance is auto-populated for the payment of Output Tax Liability.

How can I utilize balance of E-Credit Ledger?

To utilize the credit, the following rules must be considered:

  Output IGST Output CGST Output SGST Output Cess
IGST ITC        ①       ②      ③ X
CGST ITC      ②       ① X X
SGST ITC      ② X      ① X
Cess ITC X X X      ①

Example

ABC Pvt Ltd has to determine tax liability to file GSTR-3B for July 2018. Below are the details.

Particulars Amount (Rs.)
Input CGST 10,000
Output CGST 20,000
Input SGST 25,000
Output SGST 20,000
Input IGST 45,000
Output IGST 40,000
Calculate Input Tax Credit online: ITC calculator
Input Tax Credit under GST means the credit of input tax paid on purchases. ITC can be used to set of against the CGST, SGST and IGST outward tax liabiliy.
Explore
Calculate Input Tax Credit online: ITC calculator
Input Tax Credit under GST means the credit of input tax paid on purchases. ITC can be used to set of against the CGST, SGST and IGST outward tax liabiliy.
Explore

Solution

Particulars IGST CGST SGST
Tax Payable 40000 20000 20000
Input Tax Credit 45000 10000 25000
Gross Tax Liability 0 10000 0
Remaining ITC 5000 0 5000
IGST Credit used for CGST (5000) 5000 0
IGST Credit used for SGST 0 0 0
CGST Credit used for IGST 0 0 0
SGST Credit used for IGST 0 0 0
Net Tax Payable 0 5000 0
ITC carried forward 0 0 5000

FAQs

Is it necessary to claim refund of the excess amount available in the Electronic Credit Ledger?

No, the amount may continue to remain in the Electronic Credit Ledger and can be utilized for any future liability. A refund can only be claimed if Input Tax Credit has been accumulated due to the export of goods and/or services and/or due to the rate of tax on outward supplies being lower than inward supplies.

Can I download the E-Credit Ledger?

Yes. You can download and save the E-Credit ledger from your dashboard in PDF and CSV format on your local device.

How can a taxpayer check the available balance in the Electronic Credit Ledger?

A taxpayer can log in to the GST Portal. Go to Services > Ledgers > Electronic Credit Ledger.

What is an Electronic Cash Ledger under GST?

The E-Cash or Electronic Cash Ledger under GST displays all the amounts deposited for payment of tax, interest, fee or penalty. It also reflects TDS (Tax Deducted at Source) and TCS (Tax Collected at Source) since they are tax deposits of the taxpayer.

An E-Cash Ledger is like a digital wallet of the taxpayer. Taxpayer can deposit money into and utilize the balance for payment of liabilities. The payments options include NEFT, RTGS, Credit Card, Debit Card or Net Banking. The detailed report of money deposited and balance utilized can be viewed in the Electronic Cash Ledger available on the GST Portal.

Balance from E-Cash Ledger is utilized for:

  • Payment of Tax – If the balance in the E-Credit Ledger is insufficient to pay tax
  • Payment of Interest, Fee or Penalty – It should always be paid from e-cash ledger

While filing the monthly GSTR-3B, in Table 6.1 Payment of Tax, the credit balance and cash balance is auto-populated for the payment of Output Tax Liability.

Example

GST on Sales = Rs.20,000
Late Fee Payable = Rs.5,000
Balance in E-Credit Ledger = Rs.35,000

Solution

  Pay from E-Credit Ledger Pay from E-Cash Ledger
Output GST INR 20,000 NIL
Late Fee Not Allowed Deposit Cash to pay Late Fee of INR 5,000

Balance in E-Credit Ledger = Rs.15,000
Balance in E-Cash Ledger = Amount Deposited – Rs.5,000

How can I deposit money in Electronic Cash Ledger under GST?

  1. Login to GST Portal

    Log in to your account on GST Portal

  2. Navigate to Create Challan

    Taxpayer should create a Challan to make the payment. Each Challan has a unique CIN i.e. Challan Identification Number. Go to Services > Payment > Create Challan

  3. Select the Major Head and Minor Head

    Enter the amounts under correct Major Head (IGST, CGST, SGST / UTGST, Cess) and Minor Head (Tax, Interest, Penalty, Fee, Others)

  4. Payment of Challan

    Pay the challan using the appropriate payment option – E-payment, OTC, NEFT / RTGS [Read more – GST Challan Payment : Process to pay GST online]

  5. E-Cash Ledger updated

    Once the payment is made, CIN i.e. Challan identification Number is communicated to the GST system and the E-Cash Ledger is updated with the funds under specific heads.
    Note: Funds of one head cannot be utilized for payment of liability under the other head.

FAQs

Can anyone else view my Electronic Cash Ledger?

The following persons can view the Electronic Cash Ledger:
1. Taxpayer
2. Authorised Signatory of taxpayer
3. GST Practitioner of taxpayer
4. Jurisdictional Officer of taxpayer

How can a taxpayer view details of transactions in the Electronic Cash Ledger for a specific period?

To view the details of the transactions, the taxpayer can view the Electronic Cash Ledger for the required duration. The option is available on the landing page of the Electronic Cash Ledger.
A maximum of 6 months transactions can be viewed at a time.

How can the cash available in the Electronic Cash Ledger be utilised?

The amount available in the Electronic Cash Ledger can be utilized for payment of any liability for the respective major and minor heads. For example, liability for the tax under SGST can be utilized from the available amount of cash available under SGST only.

What are disadvantages of registering under Composition Scheme in GST?

Registration under the composition scheme in GST has its own set of benefits and drawbacks. The taxpayer should analyse the advantages and disadvantages to opt for GST Composition Scheme on GST Portal.

Disadvantages of GST Composition Scheme

  • No Input Tax Credit
    Input Tax Credit cannot be availed by dealers registered under the composition scheme. Thus, GST paid on purchase cannot be used for payment of GST on sale of goods or services.
  • Cannot collect tax on sales
    Business registered under the Composition Scheme cannot collect GST from customers on the sale of goods or services. As a result, it should issue a Bill of Supply and cannot charge GST.
  • No E-Commerce Sales
    A composition business cannot sell goods or services through an e-commerce platform. Therefore, if a seller wants to sell products online on an e-commerce portal, must compulsorily register under the regular scheme. Thus, an E-Commerce Seller cannot register under Composition Scheme.
  • No Inter-State Sales
    A composite dealer cannot sell goods outside its state of registration. It also cannot carry out the export of goods. Thus, there is a limited territory for business, and expansion is difficult. However, a composite dealer can sell services outside its state of registration.
  • Cannot sell exempt goods
    Business registered under composition scheme can supply taxable goods and restaurant services. Thus, they cannot sell non-taxable goods and services other than restaurant services.
  • Heavy Penalty
    If a dealer has obtained registration under Composition Scheme without being eligible for the same, there are strict penalty provisions. The dealer is liable to pay the amount of differential tax and a penalty of up to 100% of tax liability. Thus, a business should apply for registration under the composition scheme only if it fulfills all the conditions.

FAQs

Can a person who has opted to pay tax under the composition scheme avail Input Tax Credit (ITC) on his inward supplies?

No. A taxable person opting to pay tax under the composition scheme is out of the credit chain. He cannot take credit on his input supplies. When he switches over from composition scheme to normal scheme, eligible credit on the date of transition would be allowed.

Can a registered person, who purchases goods from a taxable person paying tax under the composition scheme, avail credit of tax paid on purchases made from the composition dealer? 

No, as the composition dealer cannot collect tax paid by him on outward supplies from his customers, the registered person making purchases from a taxable person paying tax under the composition scheme cannot avail input tax credit.

Can a person paying tax under the composition scheme issue a tax invoice under GST? 

No. He can issue a bill of supply in lieu of tax invoice. As he cannot issue a tax invoice, he cannot charge and collect tax from his supplies.  

What are the consequences if a person who is not eligible opts for the composition scheme? 

If a taxable person has paid tax under the composition scheme though he was not eligible for the scheme then the person would be liable to penalty and the provisions of section 73 or 74 shall be applicable for the determination of tax and penalty.

How to view or download Electronic Credit Ledger on GST Portal?

Electronic Credit Ledger is the ledger reflecting input tax credit of GST claimed on purchases. The taxpayer can use the balance in this ledger utilised for payment of tax only. Taxpayer cannot use it for payment of interest, fee, penalty etc. Taxpayer can download Electronic Credit Ledger from the GST Portal.

Steps to view or download Electronic Credit Ledger on GST Portal?

  1. Login to GST Portal

    Log in to your account on the GST Portal with valid username and password

  2. Navigate to Electronic Credit Ledger

    Go to Services > Ledgers > Electronic Credit Ledger

  3. Balance on Current Date

    The screen displays balance of Electronic Credit Ledger as on the current date

  4. Select Period

    Click on Electronic Credit Ledger and enter the period for which you want to view the ledger.
    Note: You can view the Electronic Credit Ledger for a maximum period of 6 months only.

  5. View Electronic Credit Ledger

    The Electronic Credit Ledger will appear on the screen. The taxpayer can download it in pdf or excel format.

FAQs

Can the amount available in the Electronic Credit Ledger be deemed as payment for any liability?

No, the taxpayer cannot assign the balance in electronic credit ledger to a specific liability unless he/she makes a debit entry from credit ledger. Taxpayer can use the balance by logging into the account on GST Portal.

Is it necessary to claim refund of the excess amount available in the Electronic Credit Ledger?

No, the amount may continue to remain in the Electronic Credit Ledger and can be utilized for any future liability. A refund can only be claimed if Input Tax Credit has been accumulated due to the export of goods and/or services and/or due to the rate of tax on outward supplies being lower than inward supplies.

What is an Electronic Liability Ledger under GST?

Taxpayer can view details of all his pending liabilities and paid liabilities for a specific period by viewing the Electronic Liability Ledger on GST Portal. It is a ledger that is a complete report of the liability of the taxpayer under GST. It reflects:

  • Pending GST Liability in form of tax, interest, late fee, penalty and other liability
  • GST Liability already paid by the taxpayer and mode of payment i.e. by depositing cash in Electronic Cash Ledger or utilising the balance of Electronic Credit Ledger

The E-Liability ledger on the GST Portal comprises of two parts:

Part 1: Return Related Liabilities

Under this part, taxpayer can view the liability related to GST Returns, opting for composition scheme and cancellation of registration.

Part 2: Other than Return Related Liabilities

Under this part, taxpayer can view the following:

  • Liability enhanced or reduced due to a decision of tax officer or authority.
  • Payment made against a show-cause notice issued by the tax department.
  • Any other payment to be made due to a proceeding under the GST Act.

Steps to view an Electronic Liability Ledger on GST Portal?

  1. Login to GST Portal

    Login to your account on GST Portal with a valid username and password.

  2. Navigate to Electronic Liability Ledger

    Go to Services > Ledgers > Electronic Liability Ledger.

  3. View Liability

    To view, Return Related Liabilities, click on Part-I and select the period.
    To view, Other than Return Related Liabilities, click on Part-II and select the period.

FAQs

Can a GST Practitioner view my Electronic Liability Register? Can I allow or deny access to my GST Practitioner to view my Electronic Liability Register?

Yes, a GST Practitioner authorised by the taxpayer can view the Electronic Liability ledger. Tapayer can allow or deny the option to view E-Liability Register through the utility of online engaging/ disengaging a GST practitioner.

Will the recoveries made by the Departmental Officer also be displayed in the Tax Liability Register?

Yes, all payments made against liability are shown in the Electronic Liability ledger irrespective of whether the payments were made by taxpayers or by tax officer by initiating recovery proceedings.

What is Common Credit (ITC) or Proportionate Credit (ITC) under GST?

A business may have an inward supply of input goods, input services and capital goods. Further, the inward goods and services may be used for a personal purpose or business purpose. The total input tax credit available on all such purchases is called Proportionate Credit ot Common Credit under GST. The taxpayer cannot claim the credit on the inputs used for personal purposes. Thus, the common credit should be utilized proportionately while making payment of output tax liability.

Example

Mr.X runs a business of selling computers and laptops. He purchases 10 laptops for Rs.5,00,000 including GST Rs.50,000. He gifts 1 laptop to his wife. Can he claim the input tax credit of Rs.50,000?

Solution

Since the input goods are used for personal and business purpose, the Input Tax Credit of Rs. 50,000 is called Common Credit. It can be claimed for only those goods that were actually used for business purpose. Thus, Mr.X can claim ITC of 9 laptops i.e. Rs. 45,000 (9*50,000/10)

How to utilize Common Credit (ITC) or Proportionate Credit (ITC) under GST?

To utilize the common credit, two basic rules should be considered:

  1. ITC allowed for business purpose only

    The Input Tax Credit can be claimed only if the inward goods or services are used for business purposes. If they are used for personal consumption, ITC cannot be claimed or utilized.

  2. ITC allowed for the sale of taxable goods or services only

    Input Tax Credit can be claimed only if the inward goods or services are used for the sale of taxable supplies. If they are used for the sale of exempt supplies, ITC cannot be claimed or utilized

Can a company claim a GST input tax credit on computers bought by it?
The credit can be claimed if the computers are used for business purpose. Further, they must be used for sale of taxable goods or services.
Read Answer
Can a company claim a GST input tax credit on computers bought by it?
The credit can be claimed if the computers are used for business purpose. Further, they must be used for sale of taxable goods or services.
Read Answer

Summary for steps to utilise common credit

 

Purchase of:

Used for

Claim ITC

Input Goods or Input Services

Business purpose

Yes

Personal Purpose

No

Both business and personal purpose

Claim eligible ITC

Input Goods or Input Services

Sale of taxable goods and services

Yes

Sale of exempt goods and services

No

Sale of both taxable and exempt goods and services

Claim eligible ITC

FAQs

What is Common Credit (ITC) or Proportionate Credit (ITC) under GST?

A business may have an inward supply of input goods, input services and capital goods. Further, the inward goods and services may be used for a personal purpose or business purpose. The total input tax credit available on all such purchases is called Common Credit or Proportionate Credit.

Can I claim Common Credit (ITC) for personal purposes?

The taxpayer cannot claim the credit on the inputs used for personal purposes. Thus, the common credit should be utilized proportionately while making payment of output tax liability.

Condition to utilize Common Credit (ITC)?

For utilizing Common Credit (ITC), two basic rules should be kept in mind:
1. ITC allowed for business purpose only
2. ITC allowed for the sale of taxable goods or services only